Investing in property involves the purchasing, ownership, and management, rental or resale of real estate with the goal of making a profit on the initial investment. Compared to other asset investments, real estate has limited liquidity and is also capital intensive. If these factors are well managed understood by the potential investor, real estate investment can be a highly profitable and exciting way to grow assets and capital.
When it comes to property investment, most people consider buying “safe” properties such as vacation homes, property in high-traffic business areas, houses in popular suburbs, apartments in the city core, and other similar investment options. However, these are not the only property types that will help you increase your assets over time.
If you are considering investing in property, how about buying something more unusual? In many cases, these “unusual” options are no less risky than any other run-of-the-mill option. Listed below are 5 unusual property investments that, if anything, are sure to get your imagination going when considering your options for property investment.
Plantation pine forests
Investing in farm land can be risky business, as agriculture is dependent on a number of uncontrollable factors such as climate conditions. In New Zealand, however, there is a long history of pine forest plantation and the expected tree yield and the date the timber will be harvested are known up-front.
Additionally, the forest will be insured against fire and other risks. Reaping the rewards from this investment can be a waiting game, as a full plantation cycle takes about 30 years. If you can’t afford (or don’t have the patience) to wait this long, selling your shares at anytime is a viable option.
Green living
With the tangible effects of climate change around the world, coupled with a growing environmental consciousness, the construction of eco-friendly housing and building is on the rise. Eco-friendly building initiatives include the installation of double pane windows, solar water heaters, low-flow plumbing and fire sprinkler systems.
This list is by no means exclusive – there are so many new eco-friendly developments emerging everyday and some houses are even 100% self-sustainable in terms of energy and power. These days, being eco-friendly does not mean sacrificing comfort and convenience. Developing an eco-friendly property may be slightly more expensive in the construction stage, but it also means a higher selling price for the sustainable value of the green initiatives.
Re-purposed housing
When you invite guests over for a dinner party, wouldn’t it be a great topic of conversation to point out that the home they are dining in used to be an old warehouse, museum, general store, or fire station? Or when clients come into your office, wouldn’t they be interested to see the 100 year-old post box that is still in your office from when the building functioned as a post office?
Refurbishing and re-purposing existing real estate can create real estate that is full of character and will sell for a higher price accordingly. An old church can be remodelled into a beautiful and unusual home, with features such as stained glass windows and other existing architecture.
In terms of decor, the home interior can become an extension of the theme, with pews as breakfast table benches or chalices as magnificent centrepieces.
A holiday home with a difference
Beautiful properties in the countryside or along the coast almost always make for good investment options, particularly if they are near to tourist and other attractions.
One example is a yurt cottage, which is simply a modern hut which has an exterior that looks like a tent. Inside the hut, however, is everything you need to have a comfortable holiday but still feel like you are experiencing the natural surroundings first-hand.
Creating your dream castle
It’s the stuff fairytales are made of – investing in a one of the hundreds of castle found in Europe and around the world. Let your imagination whisk you away to the princes, knights and princesses of your childhood. No matter the size, a castle conjures up ideas of adventure and prestige, and most come with exquisite views.
These are but five suggestions for investing in unusual property. To find an investment property that suits your purposes, be sure to stick to a clear budget and find a place that truly holds your interest.